FoodLogistics.com |

Companies are starting to realize that returns do have a cost impact to the bottom line.

IS YOUR COMPANY missing financial and environmental opportunities by not better managing its returns process?

According to two experts from Inmar CLS Inc., Rodney Bias, vice president of regulatory and Rich Fanning, executive vice president of operations, many food and beverage companies are not reaping the benefits of a true returns program.

Food Logistics recently talked to Bias and Fanning about industry trends in reverse logistics. Based in Winston-Salem, NC, CLS is a leading provider of reverse logistics and supply chain management solutions.

A recent study from the Supply Chain Consortium found that companies do not measure their returns process with the same scrutiny they use for outbound distribution. Why don’t companies recognize the need for this type of analysis? 

Fundamentally, food supply chain participants are more focused on forward logistics—getting the right product to the right place at the right time.

After all, the performance of their forward supply chain is how they are measured in the marketplace. By comparison, returns are a very small percentage of overall sales and, therefore, often become the forgotten piece of the supply chain.

Sometimes it’s a case of “out of sight, out of mind.” Sometimes because returns are not a core competency, the handling of them is cumbersome and difficult. And, finally, in today’s world with changing returns policies, many manufacturers never actually “see” their returns nor any data regarding total returns quantities. As a result, it is impossible to analyze or know the trend of their returns.